Cyber Security Market Analysis

Cybersecurity Market Overview

The Cybersecurity Market is projected to grow from USD 151.57 billion in 2024 to USD 358.82 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.37% during the forecast period (2024 - 2032). Additionally, the market size for Cybersecurity was valued at USD 134.02 billion in 2023. 

Increased phishing and malware threats among businesses and an increase in the number of e-commerce platforms are significant market drivers augmenting the growth of the market.

Figure 1: Cybersecurity Market Size, 2024-2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cybersecurity Market Trends

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  The growth of the endpoint security segment due to the increased BYOD trend drives the market growth.

  
  

Opportunities for the cybersecurity market have been created by the growing BYOD (Bring Your Own Device) trend, notably in the endpoint security sector. Endpoint security is the term for safeguarding network-connected devices, including computers, smartphones, and tablets. Strong security measures are increasingly necessary as more employees utilize their devices for work-related activities. BYOD greatly increases the number of endpoints connected to corporate networks. Organizations must implement strong endpoint security solutions since every device represents a possible entry point for cyber-attacks.

Endpoint security services and products are in demand due to the increased attack surface. BYOD refers to a broad category of devices with various operating systems, including iOS, Android, Windows, and macOS. Each operating system has unique security issues and vulnerabilities. Endpoint security companies will have more chances to create and supply comprehensive solutions as a result of the requirement to adapt and safeguard users across these many platforms.

Mobile Device Management solutions are frequently needed in BYOD situations to enforce security rules, control device settings, and guarantee data security. Endpoint security features like device encryption, remote device wiping, and secure containerization are frequently included in these solutions. The demand for efficient MDM solutions has facilitated the expansion of the endpoint security market. Endpoint security solutions are in high demand due to the growing BYOD trend, which is driving the growth of the cybersecurity industry. To guarantee the protection of endpoints and data in today's increasingly mobile and networked world, vendors have the chance to offer cutting-edge solutions and services that answer the specific problems provided by BYOD environments.

The cybersecurity market's growth is driven by the integration of technologies like the Internet of Things (IoT), machine learning, and cloud computing. The number of IoT devices, such as wearables, industrial sensors, smart home gadgets, and connected infrastructure, has greatly increased the attack surface for cyber threats. IoT devices frequently have weak security defenses, which leaves them open to hacking and exploitation. Strong cybersecurity solutions are now more important than ever to safeguard IoT networks and guarantee data privacy and integrity. In response, the IoT security market offers specialized solutions, such as device authentication, encryption, and vulnerability management.

The use of machine learning algorithms to improve cybersecurity defenses is growing. Massive amounts of data may be analyzed using ML, which can also spot trends and uncover anomalies that might be signs of cyber-attacks. It makes it possible for security systems to quickly identify and address threats, speeding up response times and enhancing overall security efficacy. Threat detection, user behavior analytics, network monitoring, and malware detection all leverage ML-based solutions. Cybersecurity industry growth is driven by the incorporation of ML technology, which also makes implementing more sophisticated and adaptable security measures possible.

Cloud computing allows Organizations to handle and store data in entirely new ways. But it has also brought about fresh security difficulties. Effective security measures are necessary to safeguard information, applications, and infrastructure in cloud environments from unauthorized access, data breaches, and other cyber threats. Scalability, flexibility, and centralized control are just a few advantages that cloud-based security solutions have to offer. The demand for cloud-based cybersecurity solutions has increased as businesses increasingly use cloud services. Threat intelligence, identity and access management, encryption, and secure cloud architecture are all features that these solutions offer to protect sensitive data in cloud environments.

Cybersecurity Market Segment Insights

Cybersecurity Component Insights

The Cybersecurity market segmentation, based on component, includes solution [identity & access management, risk & compliance management, unified threat management, disaster recovery, firewall, antivirus, web filtering, data loss prevention, security information and event management, and others] and services [managed services and professional services {training & education, consulting, support & maintenance, and design & integration}]. The solution category is expected to hold the major share of the Cybersecurity market over the forecast period. Identity and access management (IAM) focuses on maintaining and regulating user identities and access rights within a company's digital ecosystem. IAM is a crucial part of cybersecurity. In order to guarantee that the proper people have adequate access to resources while preventing unauthorized access, policies and procedures must be established and enforced.

Using IAM, businesses may manage and regulate access capabilities based on user roles, responsibilities, and business needs. In addition to avoiding abuse of privileges or unauthorized access, it makes ensuring users have the rights they need to carry out their duties. IAM reduces the possibility of data breaches, insider threats, and unauthorized actions by introducing granular access controls.

Cybersecurity Security Type Insights

The Cybersecurity market segmentation, based on security type, includes Network Security, End Point Security, Application Security, Cloud Security, Wireless Security, and Others. The Network Security segment is anticipated to lead the Cybersecurity market throughout the forecast period. The number and sophistication of cyber threats aimed at networks have been on the rise, which has led to a steady rise in the demand for network security solutions. A key component of cybersecurity is network security, which focuses on preserving the availability, confidentiality, and integrity of data sent via computer networks.

Organizations and people place high importance on protecting sensitive data. Financial losses, legal repercussions, and reputational harm can all occur from breaches of personal and financial information. Encryption, data loss prevention (DLP), and secure communication protocols are all part of network security solutions that assist in safeguarding data while it is being transmitted and guard against unauthorized access or data leakage.

The End Point Security segment is expected to be the fastest-growing segment of the Cybersecurity market over the forecast period. The prevalence of mobile devices and the shift towards remote employment have increased the attack surface for cybercriminals. To safeguard their endpoints and stop unauthorized access, employees who access business resources and data from numerous places and devices need strong endpoint security solutions. The need for mobile endpoint security solutions to guard against mobile-specific attacks has increased along with the use of mobile devices.

Figure 2: Cybersecurity Market, by Security Type, 2022 & 2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cybersecurity Deployment Insights

The Cybersecurity market segmentation, based on the deployment, includes Cloud and On-Premise. The Cloud deployment category is expected to hold the major share of the Cybersecurity market over the forecast period. A variety of security options are available from cloud service providers that are specially developed to safeguard cloud settings. Data loss prevention (DLP), secure web gateways (SWGs), identity and access management (IAM), and security information and event management (SIEM) systems are a few of the solutions offered. Real-time threat intelligence, cutting-edge analytics, and automation capabilities are offered by cloud-based security solutions to strengthen cybersecurity defenses.

Cybersecurity Organization Size Insights

The Cybersecurity market segmentation, based on the organization size, includes Small & Medium Enterprises and Large enterprises. The Small & Medium Enterprise category is expected to hold the major share of the Cybersecurity market over the forecast period. SMEs frequently work with larger organizations, governmental organizations, or other SMEs as a component of their supply chain. These collaborators might have certain cybersecurity demands and expectations. These needs can be met, the partners' trust and confidence can be increased, and positive business relationships can be maintained by implementing strong cybersecurity measures.

Cybersecurity Vertical Insights

The Cybersecurity market segmentation, based on the vertical, includes Manufacturing, Banking, Financial Services, and Insurance (BFSI), Healthcare, IT & Telecommunication, Retail, Government, Aerospace & Defense, and Others. The Banking, Financial Services, and Insurance (BFSI) category is expected to hold the major share of the Cybersecurity market over the forecast period. Employees in the BFSI industry who may have access to private client information, financial systems, or proprietary data pose a threat from the inside. Access controls, privileged access management (PAM), and user behavior analytics are implemented to help identify and reduce insider risks. Employee training and awareness programs are also crucial to promoting cybersecurity best practices and preventing internal security breaches.

Cybersecurity Regional Insights

By region, the analysis offers market insights into North America, Asia Pacific, Europe, and the Rest of the World. The North American Cybersecurity market is anticipated to lead the market throughout the forecast period. A complex and constantly changing cyber threat scenario affect North America. Due to its highly developed digital infrastructure, economic importance, and concentration of important data, the area is a top target for cyber-attacks. Organizations have been compelled to invest in strong cybersecurity solutions by the rising frequency and sophistication of cyber-attacks, including ransomware, data breaches, and attacks sponsored by nation-states.

Further, the key countries considered in the market report are The US, Canada, German, France, the UK, Spain, Italy, China, Japan, India, South Korea, Brazil, and Australia.

Figure 3: CYBERSECURITY MARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe Cybersecurity market accounts for the second-highest market share. Europe is susceptible to international cyber threats because of its interconnection and digital economy. Organizations in one nation might be targeted by cybercriminals in another, highlighting the importance of a coordinated and collaborative approach to cybersecurity. In order to promote information sharing and improve collective cyber defense capabilities, this has resulted in increased investments in cybersecurity technology and collaborations. Further, the German Cybersecurity market held the largest market share, and the UK Cybersecurity market was the fastest-growing market in the European region.

The Asia Pacific Cybersecurity Market is expected to grow at the fastest CAGR from 2023 to 2032. Some of the world's fastest-growing digital economies are found in the Asia Pacific due to factors like a sizable population, rising internet penetration, and quick acceptance of new technology. Organizations in the area invest in cybersecurity solutions to safeguard their digital assets and customer data and ensure secure online transactions as e-commerce, digital payments, and online services expand throughout the region. Moreover, China’s Cybersecurity market held the largest market share, and the Indian Cybersecurity market was the fastest-growing market in the Asia Pacific region.

Cybersecurity Key Market Players & Competitive Insights

The market for cybersecurity is growing as a result of large R&D efforts made by the leading market players to diversify their product offerings. Contracts, mergers and acquisitions, expanded investments, and joint ventures with other companies are just a few examples of the diverse ways that significant industrial advancements can occur. Major industrial companies are developing a range of initiatives to increase their influence ly. For the Cybersecurity Company to grow and prosper in a difficult and competitive market, it must provide services at fair prices.

One of the main strategies used by firms to satisfy customers and grow the cybersecurity market sector ly is local manufacturing to reduce operational costs. The manufacturing industry has recently profited greatly from cybersecurity. Major corporations in the Cybersecurity market, including Intel Corporation (US), HP Enterprise (US), Cisco Systems Inc. (US), Trend Micro Inc. (Japan), and others, are trying to surge market demand by spending on research and development processes.

Network security solutions and next-generation firewalls are offered by Fortinet Inc. (Fortinet). The business streamlines the IT infrastructure and offers defense against security risks. There are products available for network security, data centers, enterprise networking, network access, application security, and security management. In addition to FortiManager, FortiAnalyzer, FortiAP, FortiGate VM, FortiMail, FortiWeb, FortiASIC, FortiOS, FortiClient, and FortiSwitch, the company also offers products under other names. It makes its products available to businesses, enterprises, government agencies, security service providers, and small companies.

The corporation operates in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Sunnyvale, California, in the US, serves as the company's headquarters. FortiRecon, a complete Digital Risk Protection Service (DRPS) product that manages a company's risk posture and recommends significant action to safeguard its brand reputation, enterprise assets, and data, was introduced by Fortinet in June 2022. With External Attack Surface Management (EASM), Brand Protection (BP), and Adversary-Centric Intelligence (ACI), it offers an exceptional triple offering of outside-in protection.

A provider of cybersecurity services is Trend Micro Inc. (Trend Micro). The company creates and sells technologies for threat management and internet and computer content security. Security software, network and web security, mobile device security, and anti-spam products are all part of its product line-up. With integrated modules for ransomware, GDPR, cloud, healthcare, federal, and end-of-support systems, it also offers data and intellectual property protection solutions. 

The company's top partners are AWS, Google, Capgemini, Microsoft, IBM, AD link, Advantech, Blackberry, Citrix, F5 Network, and VMware. Its solutions can be used in homes, offices, and small, medium, and large organizations. It supports several sectors: healthcare, manufacturing, 5G networks, oil and gas, electric utilities, and automotive. The corporation conducts business in Africa, the Middle East, Europe, Asia-Pacific, and the Americas. The headquarter of Trend Micro is located in Shibuya-ku, Tokyo, Japan. Trend Micro bought Cloud Conformity in October 2021, and as a result, Trend Micro's continued innovation in cloud security has increased. Complementary technologies that automatically identify and fix various cloud infrastructure setup issues have been introduced. Additionally, it facilitates cost savings and ensures adherence to industry regulatory standards, including PCI, GDPR, HIPAA, and NIST.

Key Companies in the Cybersecurity market include

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  Intel Corporation (US)

  
  


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  HP Enterprise (US)

  
  


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  Cisco Systems Inc. (US)

  
  


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  Trend Micro Inc. (Japan)

  
  


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  Sophos Ltd. (UK)

  
  


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  BAE System (UK)

  
  


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  Carbon Black Inc. (US)

  
  


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  IBM Corporation (US)

  
  


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  Akamai Technologies (US)

  
  


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  Symantec Corporation (US)

  
  


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  FireEye Inc. (US)

  
  


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  Rapid7 Inc. (US)

  
  


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  EMC RSA (US)

  
  


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  SecureWorks, Inc. (US)

  
  


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  Imperva (US)

  
  

Cybersecurity Industry Developments

In May 2024, IBM and Palo Alto Networks unveiled a new partnership according to which they will work together to deliver AI-based revolution to the space of cybersecurity. As part of the agreement, Text generated by IBM Watsonx will be integrated into Palo Alto Networks’ offerings aimed at improving the efficiency of security operations and tools for dealing with incidents. Also, IBM intends to retrain approximately 1,000 of its consultants in relation to the technology of Palo Alto, and the parties will set up a joint security operations center.

On 23 September 2024 Mastercard announced that it reached an agreement with the owners of the cybersecurity firm Recorded Future in the amount of $2.65 billion. This acquisition would boost Mastercard's fraud prevention, identity management, and cybersecurity provisions as it seeks to incorporate the advanced threat intelligence that comes with Recorded Future’s deep exposure to the marketplace, including artificial intelligence. This transaction is expected to consummate not later than early 2025.

In August 2024, Australian Cocoon Data teamed up with Google to offer a secure file-sharing service for Google Docs users via a surface models add-on for Google Workspace. This partnership is aimed at improving the safety of users’ data, particularly those within sectors that have high compliance requirements.

In July 2024, Fortra worked with Europol within the framework of "Operation Morpheus" and closed almost 600 IP addresses that were utilized in the illegal application of an ethical hacking tool, Cobalt Strike, that was misappropriated by cybercriminals. This multinational initiative included 27 nations and partners from the business field and contributed to the improvement of global cybersecurity tremendously.

The assassination of Brian Thompson, who was in charge of the insurance division at UnitedHealth Group in December 2024, has raised fears for executives across the country. This suggests further measures could be necessary and that could be expensive and difficult.

In April 2024, a private equity firm, Thoma Bravo, bought UK-based cybersecurity firm Darktrace for 5.3 billion dollars. This indicates the willingness of the firm to increase its investments in cybersecurity.

Cybersecurity Market Segmentation

Cybersecurity Component Outlook

• Solution
  
  
  
  • Identity & Access Management
  
  
  • Risk & Compliance Management
  
  
  • Unified Threat Management
  
  
  • Disaster Recovery
  
  
  • Firewall
  
  
  • Antivirus
  
  
  • Web Filtering
  
  
  • Data Loss Prevention
  
  
  • Security Information and Event Management
  
  
  • Others
  
  
  
  


• Services




• Managed Services


• Professional Services


• Training & Education


• Consulting


• Support & Maintenance


• Design & Integration

Cyberesecurity Type Outlook

• Network Security


• End Point Security


• Application Security


• Cloud Security


• Wireless Security


• Others

Cybersecurity Deployment Outlook

• Cloud


• On-Premise

Cybersecurity Organization Size Outlook

• Small & Medium Enterprise


• Large Enterprise

Cybersecurity Vertical Outlook

• Manufacturing


• Banking, Financial Services, and Insurance (BFSI)


• Healthcare


• IT & Telecommunication


• Retail


• Government


• Aerospace & Defense


• Others

Cybersecurity Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America